Royal Commission Uncovers Misconduct and Corruption in Malaysia's Pilgrims Fund | CUAC

CUAC – Monitoring Desk A Royal Commission of Inquiry in Malaysia has uncovered financial and administrative irregularities, as well as political interference within Malaysia's Pilgrims Fund (Tabung Haji) between 2014 and 2020, contributing to the fund's financial deterioration and the accumulation of liabilities worth billions of dollars. According to the commission's report, key decisions within the fund were influenced by political considerations, while several board members were appointed for political reasons, taking advantage of weaknesses in the legislation governing the institution. Speaking before Parliament, Malaysia's Minister of Religious Affairs, Mohd Na'im Mokhtar, stated that the law enacted in 1995 granted ministers broad authority over the fund's management, financing, and investment decisions without establishing sufficient professional standards for selecting board members. The report also revealed that the fund suffered substantial losses and accumulated significant debts while continuing to distribute profits to contributors despite liabilities exceeding total assets. By the end of 2017, the fund's assets stood at approximately 70.3 billion ringgit, while its liabilities had reached 74.4 billion ringgit. In 2018, the Malaysian government announced a financial rescue plan that included injecting billions of ringgit into the fund in an effort to address the deficit and restore financial stability. The publication of the report coincided with a special parliamentary session held to discuss the findings, amid growing public and political demands to hold those responsible accountable and recover the lost funds. The case has sparked widespread debate in Malaysia, particularly because the Pilgrims Fund manages the savings of millions of citizens planning to perform the Hajj pilgrimage. Malaysia's King also called for those involved in the violations to be held accountable. The scandal is considered the latest major financial controversy involving one of Malaysia's largest public funds, following the 1MDB case, which shook the country and led to the conviction of former Prime Minister Najib Razak. Source: Al Jazeera